Office market Zug

Review and Outlook

The availability rate in the Zug region has decreased from 5.8% at end-2021 to 4.3% at present, leaving a total of 55,900 m2 of office space available for lease. The market in the city of Zug remains tight: there are hardly any large-scale office spaces available there, and when they do become vacant, they get rapidly absorbed.

Within a span of four months, for instance, 6,500 m2 of office space was re-let to brokerage firm IBKR and real estate investment manager Empira, and dermatology company Galderma moved into offices in the OPUS ZUG business complex. The availability rate in the city of Zug stands at a scant 1.7%.

This chapter is part of the Office Market Study 2023 by JLL Switzerland

Numerous leasings in new buildings in Baar

Varo Energy and MET Group have absorbed large office units in the Quadrolith II building. These leasings and others have caused the supply of vacant office space in Baar to contract by 13,900 m2, which has reduced the office space availability rate there from 11.3% at the end of 2021 to 6.8% at present. Novartis announced that it will cut back its need for space at the Suurstoffi site in Rotkreuz, but in turn, music fintech company Utopia Music AG recently leased 4,500 m2 there.

Companies seeking office space frequently prefer central locations in the city of Zug, but then end up also taking high-grade office spaces elsewhere into consideration due to the lack of office availability in the city. It is more difficult to find tenants for offices in older buildings, especially if they are hard to reach with public transportation. On the whole, however, the Zug office market was once again very dynamic in 2022.

Construction lots for further growth exist

Little new-build space will come onto the Zug office market this year. Afterwards, though, the first stages of the Tech Cluster in Zug will become ready for occupancy, as will the new headquarters of Partners Group in Baar. Additional medium-term development potential exists on the Landis + Gyr site adjacent to the Zug train station. Growth is advancing also in other municipalities in the canton of Zug. New workspaces are being built, for instance, on the Suurstoffi site in Rotkreuz and on the Papieri site in Cham.

Office market study Switzerland 2023

You can find the entire office market study Switzerland 2023 here. The report provides comprehensive insight on the office space markets in Zurich, Geneva, Bern, Lausanne, Basel and Zug. In addition to providing key data and reporting on the most significant changes in Switzerland’s largest market areas, the office market study also highlights some regional idiosyncrasies and presents a brief digression on Europe.